GMA Network Inc. said it expects net profit this year to be higher than last year despite the drop in earnings in the fist quarter due to coronavirus disease 2019 (COVID-19) pandemic. 

“In terms of bottom line results, given a steady top line coupled with cost-cutting measures implemented by the network, we are optimistic that we can surpass 2019 net profit,” Felipe L. Gozon, chairman and chief executive of GMA said.

The broadcasting network posted a net income of P2.63 billion last year, up 14 percent  from P2.32 billion in 2018. While Consolidated revenues improved 8 percent to P16.49 billion from P15.23 billion.

Gozon said the general reduction in revenues in the first quarter was due to the ECQ/COVID-19 . 

“However, sales has started to pick up recently.  It must be noted though, that last year’s top line included non-recurring election-related inflows which might be difficult to match this year,” he said. 

“Although incremental revenues are expected from the distribution of GMA Affordabox, the Company’s newest venture was launched only towards the end of the first half this year,” Gozon added. 

He added that the company currently set to exceed its initial GMA Affordabox sales projection of 600,000 for the balance of the year. 

“We are likewise continuously working on expanding its coverage in addition to the initial areas,” Gozon said. 

Affordabox is available in  Metro Manila, Benguet, La Union, Pangasinan, Bulacan, Pampanga, Nueva Ecija, Tarlac, Batangas, Cavite, Laguna, Quezon, Rizal, Bohol, Cebu, Leyte, Davao de Oro, Davao del Sur, and Davao del Norte.

In the first quarter, GMA’s net income fell by fell by 19 percent to P583 million  in the first quarter  due to the absence of political ads and the start of the COVID-19 outbreak in the tail-end of March. 

The broadcast company said net income amounted to P583.4 million in the January-to-March period, down from P721.8 million in the same period last year. 

Consolidated advertising revenues declined 7 percent in the first three months to P3.52 billion from P3.79 billion in the same period last year.

GMA said that of the total, advertising revenues accounted for P3.25 billion and subscription and other revenues amounted to P277.5 million.